Potential Risks for Ocean Shipping Amid Israel-Hamas Conflict

Any expansion of the war in Israel beyond the country’s borders could introduce risks to two key shipping choke points. The Suez Canal is a key waterway for all commercial vessels, including container ships. Similarly, the Strait of Hormuz is key to oil and gas shipping.

Israel’s main ports of Ashdod and Haifa handle 0.4% of global throughput, “and the threat of disruptions to the container trade flow through the Med region remains limited,” said analyst Linerlytica.

Zim, the world’s 10th-largest ocean carrier based in Haifa, confirmed that there could be disruptions to its services to Israel and that it will be charging a war risk premium.

The overarching concern for container shipping mirrors that of dry bulk shipping. The health of the global economy significantly influences both shipping segments.

Source: American Shipper